The Minister of Power, Adebayo Adelabu, has announced that President Bola Tinubu will soon meet with the leadership of Nigeria’s power generation companies (GenCos) to address the N4 trillion debt owed to them by the Federal Government. In a statement released on Sunday in Abuja by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister, Adelabu said the meeting aims to develop a sustainable plan for resolving the financial crisis threatening Nigeria’s power sector.
“The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu said, adding that a substantial portion of the debt would be paid immediately, with the remainder to be cleared within six months using financial instruments such as promissory notes.
Acknowledging the government’s role in contributing to the sector’s financial strain, the minister promised decisive reforms to eliminate bottlenecks and ensure smoother operations. He stressed the need for full liberalisation of the power sector and implementation of cost-reflective tariffs.
“Citizens must pay the appropriate price for the energy they consume,” Adelabu stated, while assuring that targeted subsidies would continue for vulnerable Nigerians. “However, our economy can no longer sustain blanket subsidies.”
He also revealed plans to review existing regulations, reduce levies, and improve overall market stability. Adelabu urged the GenCos to collaborate with the government in sensitising the public on efficient electricity usage and tariff realities.
Leading the delegation of GenCos was Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and the Association of Power Generation Companies. Bello warned that liquidity issues have crippled GenCos’ ability to repay loans and maintain critical infrastructure.
“Without urgent intervention, the entire power ecosystem could collapse,” he cautioned.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, stating that stable power supply is vital for sustaining industries, homes, and healthcare facilities.
Also speaking, Joy Ogaji, CEO of the Association of Power Generation Companies, highlighted systemic challenges including chronic payment defaults, irregular gas supply, and forex volatility. She noted that the naira’s devaluation—from ₦157/$1 in 2013 to ₦1,600/$1 in 2024—has severely affected GenCos’ capacity to meet maintenance obligations and service debts.
“GenCos have borne unsustainable risks, from grid collapses to punitive taxes, yet have remained committed to national service,” she said.
